The National Minimum Wage (1998)

The chapter examines the evolution of the minimum wage framework through New Labour’s social partnership approach to employment relations. The NMW (1998) presents insightful perspectives and revelatory evidence from actors involved in the negotiations. These perspectives support the assertion that the terms of the framework could have been significantly weaker without political pressure by trade unions, the TUC and Labour ministers through formal and informal settings. The ability of trade unions through political action to influence the terms of the NMW framework are considered in the context of the Labour Government’s endeavours to cultivate a strong relationship with the business community. The principal factors of influence identified as shaping the framework are trade union ideology, the strategic choices of union leaders and the strategy of the state. The cumulative effects of these factors induced coordination difficulties among trade unions, which contributed to a weaker framework than desired for by trade unions. However, partial re-regulation is to be found in the NMW and is viewed as a successful example of trade union political action, despite disappointment over aspects of the framework.